Thursday, 3 May 2012

BIMB up after Maybank IB Research raises target price

KUALA LUMPUR (May 2); BIMB HOLDINGS BHD [] was among the top gainers in the morning session of Wednesday after Maybank Investment Bank Bhd maintained its Buy rating on the stock and raised its target price to RM2.95 (from RM2.55) and said higher valuations were warranted for both Bank Islam and Syarikat Takaful (STMB), given their strong underlying fundamentals.

At 12.30pm, BIMB rose 12 sen to RM2.6 with 3.48 million shares done.

Meanwhile, Takaful rose 29 sen to RM4.25.

“Pegging on higher P/BV valuations for both companies, our SOP valuation for BIMB Holdings is raised to MYR2.95 from MYR2.55, which implies 16% upside to the current share price.

“Our revised target P/BV multiple for STMB (Not Rated) values the takaful operator at MYR4.75, or 20% upside to its current share price,” Maybank IB said in a note Wednesday.